KLAC Dividend Type Payments

KLA-TENCOR dividend

Although KLAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on KLA-TENCOR to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:00 PM ET):

KLA-TENCOR (KLAC)
Bid Ask Last Change Volume P/E Market Cap
94.18 94.23 94.23 +1.27 938K 18 14B

KLAC Dividend-Like Income Using Covered Calls

With KLAC at 94.23, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 2.83 0.8
5% 4.71 1.3
10% 9.42 2.6

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On KLAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 97.50 0.05 3 1.7 3.27 (3.5%)
Nov 16 105.00 0.65 31 2.1 10.77 (11.4%)
5% Yield On KLAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 97.50 0.05 3 1.7 3.27 (3.5%)
Nov 16 105.00 0.65 31 2.1 10.77 (11.4%)
10% Yield On KLAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 95.00 0.60 3 20.0 0.77 (0.8%)
Nov 16 100.00 1.55 31 5.0 5.77 (6.1%)

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Want more examples? KL Dividend | KLD Dividend